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Financial Services: Regulatory Recap - Week commencing 8 June 2026

Date published 12 June 2026
Read time TBC
In this edition of our Financial Services Regulation Newsletter, we focus on key legal developments over the last fortnight.

Related services

Financial Services Regulation

On the pulse

Legislation and proposed legislation

Consultation: Scams Prevention Framework codes and rules exposure draft

On 28 May 2026, the government announced that it is strengthening protections for Australians, taking decisive action to disrupt scams and making Australia a harder target for criminals. The government is seeking feedback on draft codes and rules under the Scams Prevention Framework (SPF). The consultation package includes:

  • a draft instrument setting out:
    • common code obligations for all sectors
    • specific obligations for banks and digital platforms
  • a draft instrument setting out code obligations for the telecommunications sector
  • a draft instrument setting out rules under the SPF
  • explanatory materials for the draft codes and rules
  • a guide to support the review of codes and rules
  • a consultation paper on proposed settings for internal dispute resolution.

Submissions for feedback close 25 June 2026.

Consultation: proposed Financial Institutions Supervisory Levies for 2026–2027

On 25 May 2026, the government announced that it is seeking views on proposed financial institutions supervisory levies for the 2026–2027 financial year. APRA collects these levies to recover its operational costs and other specific costs incurred by Commonwealth agencies, including the Australian Taxation Office and the Treasury. Treasury prepared this paper in conjunction with APRA.

Submissions for feedback close 14 June 2026.

Government response: Digital Assets (Market Regulation) Bill 2023 Senate report

On 4 June 2026, the government published its response to the Senate Economics Legislation Committee report on the Digital Assets (Market Regulation) Bill 2023.

The response addresses the four recommendations made in the committee’s report. The government:

  • supports one recommendation
  • notes two recommendations
  • supports one recommendation in principle.

Government response: Inquiry into Scams Prevention Framework Bill 2024 [Provisions] Senate report

On 2 June 2026, the government published its response, addressing recommendations raised in the Senate Economics Legislation Committee’s report into the Scams Prevention Framework Bill 2024 [Provisions].

ASIC

ASIC proposes to remake six legislative instruments about managed investment schemes

On 27 May 2026, ASIC announced that it is seeking feedback on its proposal to remake legislative instruments that provide relief around managed investment schemes. Under the proposal, the instruments, which are due to expire on 1 October 2026, will be extended for five years. The legislative instruments to be remade are:

ASIC is also proposing to remove transitional provisions that are no longer necessary. This includes the relief in section 6 of ASIC Corporations (Attribution Managed Investment Trusts) Instrument 2016/489. This was intended to assist responsible entities transitioning to the attribution managed investment trust regime.

Submissions for feedback close 24 June 2026.

ASIC: reporting and audit update – Issue 4

On 29 May 2026, ASIC published the Reporting and audit update, which covers regulatory developments in reporting and audit, including sustainability and financial reporting matters.

Parliamentary Joint Committee on Corporations and Financial Services, opening statement, 29 May 2026

On 29 May 2026, ASIC published ASIC Chair Joe Longo’s opening statement at the Parliamentary Joint Committee on Corporations and Financial Services, Inquiry into the Oversight of ASIC, the Takeovers Panel and the Corporations Legislation, public hearing on 29 May 2026. His statement focusses on the challenges ahead, which include:

  • the importance of maintaining trust in institutions
  • ASIC’s requirement to get the balance right between active enforcement and regulation
  • the need to stay ahead of technological change
  • supporting consumers and investors to make informed financial choices.

ASIC Chair Joe Longo speaks on Tech Council of Australia panel

On 27 May 2026, ASIC published Chair Joe Longo’s speech from the panel at the Tech Council of Australia’s Future of Innovation in Australia’s Financial Markets event in Sydney on 21 May 2026. Key points of discussion include:

  • regulatory sandbox and a dedicated point of contact for startups
  • innovation must deliver trust, not be balanced against it
  • the pace of AI adoption is unprecedented and transformative for financial services.

ASIC regulatory tracker updates

See ASIC regulatory tracker.

ASIC InFocus June 2026 – Volume 35 Issue 5

On 3 June 2026, ASIC published its InFocus newsletter for June 2026. Key points include:

  • Upcoming fee changes –From 1 July 2026, some ASIC fees will change in line with the Consumer Price Index (CPI). ASIC has updated its Fees for commonly lodged documents webpage.
  • ASIC launches refreshed scams-related information –ASIC has updated its scams-related information as part of its work to help protect Australians from the harmful impact of scams.
  • RA01 uplift: Strengthening the registered agent onboarding process – From 3 June 2026, certain requirements will apply to new registration applicants submitting a RA01 form.
  • RegistryConnect: Company search going live – This month, ASIC is launching a refreshed ASIC Companies Register search service. The new service will launch as a public beta release and will operate alongside ASIC Connect while further enhancements are made.
  • Unsolicited renewal and company review notices – ASIC is reminding companies and business name holders to be aware of unsolicited communications from third-party service providers about annual reviews or renewals.
  • ASIC calls for urgent cyber uplift as AI accelerates cyber threats – ASIC is calling on all licensees and market participants to urgently strengthen their cyber resilience measures, as frontier artificial intelligence (AI) intensifies the global cyber risk environment.
  • The way you send branded text messages is changing: SMS Sender ID Register –The Australian Communications and Media Authority (ACMA) is launching the SMS Sender ID Register, to improve trust in text messages and reduce scams.
  • Financial complaints dashboard updated – On 3 June 2026, ASIC announced that it has enhanced the Internal Dispute Resolution (IDR) data dashboard, which provides public access to complaints data across the financial services sector.
  • Simplification update coming this month: more forms for email lodgement – ASIC is continuing to make it easier to lodge by email, with more forms coming in June.

ASIC proposes consolidation of financial reporting and auditing instruments

On 1 June 2026, ASIC announced that it is seeking further feedback on its proposal to streamline 17 legislative instruments about financial reporting and auditing relief into two instruments. The two draft instruments are:

  • ASIC Corporations (Annual and Half-year Reporting) Instrument 2026/XXX (the draft Financial Reporting Instrument)
  • ASIC Corporations (Auditing) Instrument 2026/XXX (the draft Auditing Instrument).

The new instruments will make it easier for users to understand available relief and reduce the number of legislative instruments dealing with financial reporting and auditing.

These changes respond to stakeholder feedback received about the consolidation pilot in Report 813 Regulatory simplification (REP 813) and that is outlined in Report 830 Regulatory simplification progress report (REP 830).

Copies of the draft instruments are available at CS 54 Proposed consolidation of financial reporting and auditing instruments.

Submissions for feedback close 10 July 2026.

See ASIC consultation.

ASIC proposes to withdraw financial reporting relief for uncontactable members

On 5 June 2026, ASIC announced that it is seeking feedback on its proposal to withdraw financial reporting relief for uncontactable members before it expires on 1 October 2026. ASIC has assessed that ASIC Corporations (Uncontactable Members) Instrument 2016/187 is no longer being used due to changes in theCorporations Act. Sections 110JA and 110F (4A) of the Corporations Act now provide similar relief where a member is uncontactable.

Submissions for feedback on this consultation close 17 July 2026.

ASIC: Additional Budget Estimates, opening statement, Senate Economics Legislation Committee, 5 June 2026

On 5 June 2026, ASIC published the opening statement by ASIC Chair Sarah Court at the Additional Budget Estimates. The opening statement focusses on:

  • New ASIC Chair's first parliamentary appearance.
  • Federal Budget funding for RegistryConnect (Tranche 2) to stabilise and uplift ASIC's business registers, improving online services for company registrations, lodgements, annual reviews, Director ID linking, and company deregistration powers.
  • Budget investment to strengthen oversight of managed investment schemes.
  • Ongoing intensive work on the First Guardian and Shield matters.
  • ASIC has commenced a preliminary investigation into allegations regarding registered company auditors at KPMG, following whistleblower claims.

ASIC updates six regulatory guides

On 4 June 2026, ASIC updated six regulatory guides to update references to crowdsourced funding and remade legislative instruments, and to reflect changes to RG 168 Product Disclosure Statements: Disclosure and other obligations. ASIC has also made minor updates to remove out-of-date information. The updated regulatory guides are:

See ASIC regulatory tracker.

ASIC remakes market integrity rule for securities markets

On 3 June 2026, ASIC made the ASIC Market Integrity Rules (Securities Markets) Determination 2026/444, which maintains ASIC's policy for determining the allocation of Equity Market Products to tiers. The determination replaces the ASIC Market Integrity Rules (Securities Markets) Determination 2026/166, which is due to be repealed on 7 July 2026.

See ASIC regulatory tracker.

ASIC updates guidance on foreign financial services provider licensing relief

On 1 June 2026, ASIC made technical amendments to Information Sheet 157 Foreign financial services providers: Licensing relief to reflect recent legislative changes.

See ASIC regulatory tracker.

APRA

APRA formalises three-tiered approach to proportionality in banking prudential framework

On 27 May 2026, APRA released its response to consultation and finalised positions on introducing a third tier in the prudential framework for ADIs. The response letter includes new and updated definitions, minor consequential changes to CPG 511 Remuneration and non-confidential submissions.

Following a consultation that closed earlier this year, APRA wrote to banks confirming it will proceed with the following proposals aimed at embedding additional proportionality and driving competition in the industry:

  • introducing a third tier of Most Significant Financial Institutions (MSFIs) for banks with total assets greater than $300 billion
  • raising the asset value threshold for banks to qualify as a Significant Financial Institution (SFI) from $20 billion to $30 billion
  • automatically providing a 12-month transition period when a regulated institution moves to a higher tier.

APRA finalises new IRB accreditation pathway for banks

On 4 June 2026, APRA announced that it has finalised a new pathway for banks to become accredited to use the internal ratings-based (IRB) approach to calculate credit risk-weighted assets. The new pathway has the potential to boost competition while still supporting financial safety by incentivising banks to invest in advanced risk management capabilities. The IRB approach allows banks to better match capital to their actual risk, which can reduce their capital requirements and enable more competitive pricing.

APRA finalises FAQ on liquidity treatment of deposits with settlement service providers

On 2 June 2026, APRA released a letter to Minimum Liquidity Holding authorised deposit-taking institutions finalising its FAQ on the liquidity treatment of deposits placed with settlement service providers. This letter responds to feedback and finalises the FAQ relating to the treatment of deposits placed with SSPs.

APRA publishes Chair John Lonsdale's opening statement to the Senate Economics Legislation Committee

On 5 June 2026, APRA published John Lonsdale’s opening statement to the Senate Economics Legislation Committee. Key points include:

  • Australia's financial system remains strong and stable. Banks and insurers are well capitalised, liquidity positions are strong, and stress testing continues to show the system can withstand a range of severe but plausible scenarios. This leaves the system well placed to continue supporting households and businesses, even if economic conditions deteriorate.
  • The global environment is increasingly volatile, with risks arising across geopolitical, technological, operational and financial channels. Rapid advances in artificial intelligence are creating new opportunities but also new vulnerabilities, with governance and risk management practices not keeping pace. Cyber security remains a top priority, as the frequency and sophistication of cyber incidents continue to increase.
  • APRA is sharpening its supervisory intensity and taking action across the system. This includes clearer expectations on risk management, targeted supervisory reviews, and enforcement action to hold entities to account for failing to meet prudential standards, including increased capital overlays, imposed licence conditions on several entities, and a court enforceable undertaking from Netwealth.

AUSTRAC

AUSTRAC: Changes to transaction reporting from 1 July 2026

On 28 May 2026, AUSTRAC announced that it will be releasing new threshold transaction report (TTRs) and suspicious matter report (SMRs) forms on 1 July 2026 to align with the recent AML/CTF changes. The new forms are designed to improve data quality so AUSTRAC can better detect and respond to financial crime. The changes also provide users with a more streamlined experience in AUSTRAC Online.

Other bodies and regulators 

RBA: Payments System Board Update: June 2026 Meeting

On 4 June 2026, the Reserve Bank of Australia (RBA) summarised the issues discussed at the Payments System Board’s meeting, which include:

  • The RBA’s full assessment of the Reserve Bank Information and Transfer System (RITS)
  • The Review of Payments System Regulation
  • The Advanced Encryption Standard (AES)
  • Implementation of the Review of Merchant Card Payment Costs and Surcharging
  • Unmet payment needs and digital money.

G+T articles

G+T Insight – The Competitive Edge Podcast – the latest episode is titled ‘TSLRIC Poetry: Dr Lilla Csorgo on merger control, ex ante regulation, economics and literature’ – Maya Dodd and Matt Rubinstein (25 May 2026)

G+T Insight – Zip Co zapped by High Court of Australia: trade mark loss leads to rebrand – unpacks the HCA’s decision to dismiss an appeal by the Zip Companies – Lisa Lennon and Caelan Bruce (25 May 2026)

G+T Insight – Financing AI infrastructure in Australia: the opportunity is real, but power must come first – discusses AI infrastructure as an asset class – Jamie Guthrie and James Frixou (25 May 2026)

G+T Insight – ‘Click Here’: Australia’s Scam Prevention Framework takes shape –provides an overview of the Scams Prevention Framework and implications – Silvana Wood, Antonia Garling, Jeremy Jose, Chris Whittaker and Christine Harb (3 June 2026)

G+T Insight – AI disputes: the invisible defendant? What in-house counsel need to know – sets out where AI related disputes are emerging and what regulators are targeting – Peter Munro, Philippa Hofbrucker, Richard Harris, Crispian Lynch and Kasia Dziadosz Findlay (4 June 2026)

G+T Insight – ACCC gains fast-track exemption and authorisation powers in “exceptional circumstances” – unpacks the new exceptional circumstances laws which commenced on 27 May 2026 – Elizabeth Avery, Simon Muys and Haidee Leung (4 June 2026)

G+T Insight – How to protect your business when your IT vendor fails – outlines mechanisms to adopt to mitigate the risks to businesses from IT vendor insolvency – Andrew Hii, Anna Schwartz and Claire McGrath (5 June 2026)

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